Which of the following individuals would NOT be considered part of the labor force? a. Aileen, who is a full-time student working part-time b. Lisa, who is working part-time but wants to be working full-time c. Kimberly, who has retired from the military and now works at the post office d. Charles, who is in the Marines and is currently deployed to Iraq e. Thomas, who is unemployed but has given up searching for a job

Answers

Answer 1

Answer:

e. Thomas, who is unemployed but has given up searching for a job

Explanation:

The term "labor force" refers to people in an economy that are either employed or unemployed and searching for employment.

From the options provided, Thomas is the only one who is not employed and not looking for a job hence, he should not be considered as part of the labor force.

Answer 2
Final answer:

The labor force includes individuals who are either employed or actively seeking employment. Therefore, out of the individuals listed, Thomas is the one not considered part of the labor force as he is unemployed and has given up searching for a job.

Explanation:

In the context of labor economics, the labor force consists of persons who are either employed or unemployed (actively seeking work). This highlights a crucial aspect of the labor force definition; it's not just about whether a person is working, but also includes whether they're actively seeking employment. In the given options:

Aileen, Lisa, Kimberly, and Charles all fall into the labor force because they are either working or willing to work.However, Thomas is not considered part of the labor force. Although he is unemployed, he has given up searching for a job, therefore placing him outside of the labor force.

It's essential to differentiate between types of unemployment and those who constitute the 'out of labor force' group. For example, a person out of work but actively seeking is still considered part of the labor force as opposed to someone who is also out of work but has stopped looking for employment.

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Related Questions

Patricia McDonald has determined that the value of her liquid assets is $4,500, the value of her real estate is $148,000, the value of her personal possessions is $62,000, and the value of her investment assets is $73,000. She has also determined the value of her current liabilities is $7,500 and the value of her long term liabilities is $98,000. What is Patricia's net worth?

Answers

Answer:

$182,000

Explanation:

Total assets:

= Value of her liquid assets + Real estate + Personal possessions + Investment assets

= $4,500 + $148,000 + $62,000 + $73,000

= $287,500

Total liabilities:

= Current liabilities + Long term liabilities

= $7,500 + $98,000

= $105,500

Net worth:

= Total assets - Total liabilities

= $287,500 - $105,500

= $182,000

A portfolio has 30% of its value in IBM shares and the rest in Microsoft (MSFT). The volatility of IBM and MSFT are 35% and 30%, respectively, and the correlation between IBM and MSFT is 0.5. What is the standard deviation of the portfolio excel?

Answers

Final answer:

The portfolio's standard deviation is calculated using a designated formula that incorporates the weights of the stocks in the portfolio, their individual volatilities, and their correlation. Substituting the given values into this formula will provide the standard deviation.

Explanation:

To find the standard deviation of the portfolio, we first need to consider the weights of each stock in the portfolio and their respective volatilities. The weight of IBM (x) is 30% and Microsoft (y) is 70%. The volatilities, or measures of risk, for IBM and Microsoft are 35% and 30% respectively. The correlation between IBM and Microsoft, which measures how the two stocks move in relation to each other, is given as 0.5.

Given these values, we can use the portfolio standard deviation formula, which is represented as:

σp = sqrt[(x^2)*(σ1^2) + (y^2)*(σ2^2) + 2*x*y*corr(1,2)*σ1*σ2]

where σp is the portfolio standard deviation, x and y are the weights, σ1 and σ2 are the standard deviations (volatilities) of the two stocks, and corr(1,2) is the correlation between the two stocks.

You need to plug the given values for the weights, volatilities and correlation into the formula. Remember, when computing the result, the volatility values should be expressed in decimal form, i.e., 35% would be 0.35.

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Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was highly concentrated, with a Herfindahl-Hirschman index of 2,765. Case’s share of that market was 22 percent, while Fiat comprised just 12 percent of the market. If approved, by how much would the post merger Herfindahl-Hirschman index increase?

Answers

Answer:

The Post Merger Herfindahl-Hirschman index will increase by 528 Points

Explanation:

Herfindahl-Hirschman index or simply the HH Index measures a market's level of competitiveness based on the number of firms participating in the industry.

HH Index has a maximum of 10,000 points for a market that is dominated by one firm and continues to reduce and tend towards 0 as the number of firms with equal sizes in the industry increases. In other words, the increase in an industry's HH Index is a function of the decrease in the number of firms in the industry and the disparities in sizes among the firms in the industry.

For acceptable levels of HH Index, the general consideration is that a market with HH Index between 1,500 and 2,500 has a moderate concentration, while any market with HHI higher than 2,500 points is highly concentrated.

To the Question,

the Success of the Merger between Fiat and Case would reduce the number of firms in the market and this will lead to an increased HHI,The formula for increase in HH Index==10,000 (Maximum HHI Points) [(22% (Case's Market Share + 12% (Fiat's Market Share)^2 - (22%)^2- (12%)^2]= 10,000 [(0.22 + 0.12)^2 - (0.22)^2 - (0.12)^2]=10,000 (0.0528)=528 PointsThis means the Post Merger HH Index will increase by 528 Points from 2,765 to 3, 293 (2,765+528)

Final answer:

The Herfindahl-Hirschman Index (HHI) post the merger between Fiat and Case with market shares of 12% and 22% respectively, increases by 532.

Explanation:

Herfindahl-Hirschman Index (HHI) is used to measure the concentration of market by adding the square of the market share of each firm in the industry. In this case, there is a merger between Fiat and Case with market shares of 12% and 22% respectively. You calculate market concentration post-merger by squaring the new combined market share of the merged entity (Fiat-Cases), and add it to the HHI of the other remaining firms. The increased HHI after the merger can be calculated as follows: ((12 + 22)^2 - (12^2 + 22^2)) = (34^2 - (144 + 484)) = 1160 - 628 = 532. Hence, the post merger Herfindahl-Hirschman index would increase by 532.

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the risk that a portfolio's return will underperform the benchmark return is called the ____.

Answers

Answer:

tracking error

             

Explanation:  

As per the subject matter of finance, tracking error refers to the risk metric in a stock portfolio related to the portfolio administrator's actively managed funds choices; it shows how strongly a portfolio matches the standard to which it is thoroughly tested.

The most common indicator is perhaps the standard deviation of the portfolio-index return gap.Tracking error relates to the measure of the divergence from the baseline. Tracking error will not take into account risk (return) which is just a market activity feature.

Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions). 2020 2019 Net sales $4,750 $5,501 Cost of goods sold 3,300 3,701 Net income 85 110 Accounts receivable 75 125 Inventory 1,150 1,250 Total assets 2,850 3,250 Total common stockholders’ equity 900 1,121 Compute the following ratios for 2020.

Answers

Answer:

See below

Explanation:

The following ratios are calculable with the information.

Profit margin

Margin  = Net profit / Sales

2019 = 110 / $5,501  = 1.99%

2020 = 85 / 4750 = 1.79%

Assets Turnover

AT = Sales / Total assets

2019 = 5,501 / 3,250 = 1.69 times

2020 = 4750 / 2850 = 1.66 times

Inventory Turnover

IT = Cost of goods sold / {(opening Inventory + Closing Inventory)/2]

Inventory Turnover for 2020 = 3300 / [(1150+1250)/2]

Inventory turnover = 2.75 times

Gross margin

Gross profit = Gross profit / Sales

2019 = (5501-3701) / 5501 = 32.7%

2020 = (4750-3300) / 4750 = 30.5%

Hope these are what you are looking for.

Ginger, Inc., has declared a $5.70 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 20 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid.
The company's stock sells for $94.15 per share, and the stock is about to go ex dividend. What do you think the ex-dividend price will be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

$89.59

Explanation:

The computation of the ex-dividend price would be

= Sale price of the stock - after-tax dividend

where,  

The sale price of the stock would be $94.15

And, the after-tax dividend would be

= Dividend per share × (1 - tax rate)

= $5.70 × (1 -  0.20)

= $5.70 × 0.80

= $4.56

Now put these values to the above formula  

So, the value would equal to

= $94.15 - $4.56

= $89.59

Final answer:

The ex-dividend price of Ginger, Inc. would be $89.59 per share after accounting for a 20% tax on its declared $5.70 dividend. This price represents the stock's value after the dividend's after-tax amount has been subtracted from its current price.

Explanation:

The question involves the concept of an ex-dividend price, which is the price that a stock typically drops to after a dividend is paid out. In this scenario, Ginger, Inc. has declared a $5.70 per share dividend. Since capital gains are not taxed but dividends are taxed at a rate of 20%, investors will receive only $5.70 - ($5.70 × 0.20) = $4.56 per share after taxes. To find the ex-dividend price, we subtract this after-tax dividend from the stock's current price of $94.15. Therefore, the ex-dividend price would be $94.15 - $4.56 = $89.59.

To illustrate further, consider a scenario where an investor buys a share for $100 with an expectation of a $6.00 dividend. If the stock price rises to $105 and they sell, they receive a capital gain in addition to the dividend. Similarly, if they bought a share of Wal-Mart for $45 and sold it for $60, the $15 profit is also a capital gain. Whether it's an increase in stock value or receiving dividends, both contribute to the investor's rate of return.

An investor is analyzing the risk of a possible investment by producing three different scenarios. Under a pessimistic scenario, the property would produce a BTIRRp of 8%; a most-likely scenario would produce a BTIRRp of 12%; and an optimistic scenario would produce a BTIRRp of 16%. The investor assigns the pessimistic scenario a 25% chance of occurring, the most-likely case a 60% chance of occurring, and the optimistic scenario a 15% chance of occurring. What is the standard deviation of the returns?

Answers

Answer:

Scenario    R(%)   P      ER       R - ER    (R - ER)2    (R - ER)2.P

Optimistic   16    0.15   24.0    -17.2      295.84       44.376

Most-likely  12    0.60  7.2       -21,2     449.44        269.664

Pessimistic   8    0.25  2.0      -25.2     635.04        158.760

                                ER 33.2                    Variance    472.80

Standard deviation of the return

= √472.80

= 21.74%

Explanation:

The expected return is the product of return and probability. The total expected return is the aggregate of individual expected return. R - ER is the difference between individual return and total expected return. Variance is (R - ER) raised to power 2 multiplied by probability.

Final answer:

The standard deviation of the investment's returns is calculated using the weighted average of the possible returns to determine the expected return, then calculating the variance for each scenario, and finally, taking the square root of the total variance to get the standard deviation.

Explanation:

The student is asking how to calculate the standard deviation of the returns for an investment under three different scenarios with different probabilities. To find the standard deviation, we first calculate the expected return, which is the weighted average of the possible returns, and then use this to calculate the variance and the standard deviation. The expected return E(R) can be calculated as follows:

E(R) = (0.25 × 8%) + (0.60 × 12%) + (0.15 × 16%)

Once we have the expected return, we calculate the variance σ1(R) using the formula:

σ1(R) = Σ[probability × (return - expected return)^2]

For each scenario:

Variance for pessimistic scenario = 0.25 × (8% - E(R))^2Variance for most-likely scenario = 0.60 × (12% - E(R))^2Variance for optimistic scenario = 0.15 × (16% - E(R))^2

Summing these gives the total variance, from which the standard deviation is the square root.

This process is a measure of risk and represents the volatility or uncertainty of returns from an investment. It's important for the investor to understand this concept, as higher standard deviation indicates greater risk and potential for variance in actual returns.

Where the agreement of the parties is contrary to any of the provisions or standards in a preprinted sales contract, it is BEST to:_____

a. Insert one or more special clauses in an addendum to the contract.
b. Renegotiate the contrary item(s) with the parties to the contract.
c. Line out the particular provision or standard affected.
d. Prepare a nonstandard contract.

Answers

Answer: Insert one or more special clauses in an addendum to the contract.

Explanation:

The standard provision are assumed to apply to every contract especially when signed on a pre-printed contract agreement that contains such standards.

In the above scenario the provision of the sales contract in a pre-printed sales contract applied to the parties.

To give validity to the contrary terms an addendum of it has to be added to the standard of the pre-printed sales contract.

Re- negotiating or listen the contrary terms does not give validity to it, neither does preparing a non standard contract.

The pension plan for GL Inc. requires a contribution to the plan administrator equal to 11% of employee salaries. Salaries were $575,600 for the period. The journal entry to record the pension benefit would include a.a debit to Cash for $63,316. b.a credit to Cash for $63,316. c.a debit to Postretirement Benefit Expense for $63,316. d.a credit to Salary Expense for $63,316.

Answers

Final answer:

The correct journal entry to record the pension contribution would be a debit to Postretirement Benefit Expense and a credit to Cash for $63,316, reflecting the pension plan's expense and the outflow of cash, respectively.

Explanation:

The student is dealing with a journal entry related to pension plan contributions in a business setting. With salaries totaling $575,600 and a pension contribution rate of 11%, the calculation for the contribution is $575,600 * 0.11, which equals $63,316.

The correct journal entry to record the employer's contribution to the pension plan would include a debit to Postretirement Benefit Expense for $63,316 and a corresponding credit to Cash for the same amount because the company is incurring the expense now and will be paying the amount to the plan administrator. Hence, the correct answer is: c. a debit to Postretirement Benefit Expense for $63,316.

Joni Kingbird Inc. has the following amounts reported in its general ledger at the end of the current year.
Organization costs $24,200
Trademarks 16,500
Discount on bonds payable 37,200
Deposits with advertising agency for ads to promote goodwill of company 12,200
Excess of cost over fair value of net identifiable assets of acquired subsidiary 77,200
Cost of equipment acquired for research and development projects; the equipment has an alternative future use 87,200
Costs of developing a secret formula for a product that is expected to be marketed for at least 20 years 83,400
On the basis of this information, compute the total amount to be reported by Kingbird for intangible assets on its balance sheet at year-end.

Answers

Answer:

$93,700

Explanation:

Excess of cost over fair value of net identifiable assets of acquired subsidiary Shall be considered as good will and it will come under the head intangible assets.

Other are considered to be a expense.

Total amount reported for intangible assets:

= Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary

= $16,500 + $77,200

= $93,700

Choose the ideal cost of quality breakdown from the following options.

a. Prevention 15%, Appraisal 35%, Failure 50%
b. Prevention 5%, Appraisal 45%, Failure 50%
c. Prevention 50%, Appraisal 35%, Failure 15%
d. Prevention 25%, Appraisal 50%, Failure 25%

Answers

Answer:

The correct option is c.

Prevention 50%, Appraisal 35%, Failure 15%

Explanation:

A quality breakdown should have higher percentage of prevention, follow by Appraisal ,then small percentage of failures due to unforseen occurrences.

Answer:

Options A and B both represent ideal cost of quality (CoQ) breakdowns.

Explanation:

In trying to determine the financial benefit of quality in an organization, certain models can be adopted. One such model is the PAF model.

The PAF model tracks the resources spent in ensuring quality by preventing the occurrence of bad quality, appraising the products and processes and the internal and external costs of failure. It accounts for all of the activities that any typical company would perform in the name of providing good products or services to customers.

Prevention refers to costs associated with preventing a quality problem from occurring in the first place. Typical costs that are included in this category are; training, procedure writing, ISO related costs, and process or equipment automation.

Appraisal refers to any activity aimed at inspecting the quality of the product or service including calibration, instrumentation, and inspection and test personnel.

Internal Failure are those costs associated with recognizing a poor quality characteristic exists BEFORE the product leaves the factory. The most common cost in this category is scrap, followed closely by rework costs.

External failure is failure of a product or service at the delivery point or usage point of the customer. At this point, the product is fully burdened with cost, including transportation and storage costs. Reputation is impacted here too.

[tex]CoQ = Prevention + Appraisal + Failure[/tex]

The point where the sum of Prevention and Appraisal  cost is equal to the Failure cost is referred to as minimal or ideal Cost of Quality point.

[tex]Prevention + Appraisal = Failure[/tex]

Clearly, in option A,  [tex]15%+ 35% = 50%[/tex]

and in option B, [tex]5% + 45% = 50%[/tex].

Assume deflation is occurring in a nation; the implication(s):

Answers

Answer:

1) Demand for goods declines

2)  Salaries declines

3) Bank loans reduces

4) Buyers' losses increase

5) Wages declines, debts increases

6) Interest rates go to zero

7) Business profits decrease

8) Unemployment increases

Explanation:

There are always reasons to beware of deflation. These are:

1) While consumers are not in a hurry to buy goods in the prospect of falling prices, there is a delay in demand, and demand for goods declines. In addition, prices are falling in response to a declining student.

2) Salary projections are also declining, and consumers are more likely to save than spend money. For example, 70% of US economic growth is based on consumption, which could lead to overall GDP decline in the country.

3) The volume of bank loans is also reduced, as repayment of interest rates that are larger than the loans themselves is not beneficial to the borrower.

4) Buyers are subject to a loss of value over time as the value of the goods they purchase.

5) The higher the debt of the borrower, the worse it is: during deflation, wages are reduced, and debt remains the same.

6) During inflation there is no upper limit of interest rates, and in deflation they go to zero. Banks do not offer 0% credit, and when rates are above zero, banks make money, but borrowers have to make losses here.

7) Companies' profits also decrease during deflation, which results in lower securities prices. This worries private investors who want to keep their profits out of dividends.

8) Unemployment increases while companies' struggles to make a profit, and their wages decrease. These processes have a negative impact on the economy as a whole.

Which of the following statements about the consumers’ responses to rising gasoline prices is correct?

a.About 10 percent of the long-run reduction in quantity demanded arises because people drive less and about 90 percent arises because they switch to more fuel-efficient cars.
b.About 90 percent of the long-run reduction in quantity demanded arises because people drive less and about 10 percent arises because they switch to more fuel-efficient cars
.c.About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.
d.Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run

Answers

Answer:

c.About half of the long-run reduction in quantity demanded arises because people drive less and about half arises because they switch to more fuel-efficient cars.

Explanation:

In a long run, The demand is more elastic than in a short run, this is because the consumers have both more time and number of substitutes to switch to. So almost 50% of long-run decrease in quantity demanded is due to less driving by people, while rest 50% is due to people switching to more fuel-efficient cars.

In the aggregate expenditures model if aggregate expenditures equal 800 billion and real GDP equals 600 there is a_________________

A. investment equals –$200 billion.
B. unplanned inventory accumulation equals $200 billion.
C. consumption plus investment equals $200 billion

Answers

Answer:

unplanned inventory accumulation equals -$200 billion.

Explanation:

As we know that

Unplanned inventory equals to

= Real GDP - aggregate expenditures

= 600 billion - 800 billion

= -$200 billion

It shows a difference between the real GDP and the aggregate expenditure

Since the real GDP is less than the aggregate expenditure, so the unplanned inventory should come in negative amount else it comes in a positive amount

By helping communicate about brands, advertising in the era of industrialization made previously unmarked commodities into differentiated product offerings, and ______a. Used electronic commerce to do so b. Created brand marks and identities c. Diminished the growth of wholesalers d. Inhibited the growth of retail chains markers

Answers

Answer:

b. Created brand marks and identities

Explanation:

Before industrialization, usual commodities (FMCG - fast moving consumer goods) were unmarked and not connected to a specific brand or image. Sugar was simply referred to as sugar for example, and the same applied to similar products.

Afterward, the notion of brand and brand identity emerged and products became differentiated by brand and company. People started to think and ask questions before buying: "Which brand of sugar should I buy?". The brand usually reflects the consumer's status, social position and preferences.

Final answer:

By helping communicate about brands, advertising in the era of industrialization made previously unmarked commodities into differentiated product offerings and created brand marks and identities. option B

Explanation:

By helping communicate about brands, advertising in the era of industrialization made previously unmarked commodities into differentiated product offerings and created brand marks and identities. This branding evolution was a response to the challenges faced by companies as they grew into national businesses.

Prior to the advent of strong brand identities, regional business expansion by salesmen could lead to inconsistent product quality and pricing, even to the extent of unethical practices like diluting products for personal profit.

The development of national brands offering consistent quality, such as Coca-Cola and Quaker Oats, became essential to corporate reputation and success. As the advertising industry grew, so did the methods of reaching customers. With expanded trade and mass production, businesses vied for consumer attention among a wide array of products.

This led to increased spending in advertising and innovations such as full-page newspaper ads and professional advertising agencies. Moreover, the importance of advertising was reinforced with the rise of print media and the development of television, both of which focused on creating visual connections with consumers through graphic images and recognizable brand logos.

On their second date, Colby and Mac spend a considerable amount of time talking about their pasts, revealing their likes and dislikes, and exploring their compatibilities. Colby and Mac's interactions are indicative of which stage of relationship development?
contact
involvement
intimacy
dissolution

Answers

Answer:

The correct answer is letter "B": involvement.

Explanation:

In the involvement stage of relationships, people share personal information in detail such as past experiences and they start to show each other emotions and feelings. According to specialists, this happens because both parties are measuring the other's interest to find out how far the relationship could go.

Suppose the government were to replace the income tax with a consumption tax so that interest on savings was not taxed. The result would be that the interest rate

a. and investment both would increase.

b. and investment both would decrease.

c. would increase and investment would decrease.

d. would decrease and investment would increase.

Answers

Answer:

d. would decrease and investment would increase.

Explanation:

In a free market mechanism where investment is equal to savings in aggregate level, and interest rate is the consequence of supply and demand of savings, a change in income tax rules would incentivize people to increase the level of savings. An increase in savings would decrease the interest rate

Andy "Nard Dog" Bernard graduated from Cornell in May of 2018 with a BA in Women's Studies. As a graduation gift, Nard Dog's father, a widower, gave him an old Toyota Prius because, according to the father, "the Ferarri is more your brother's style and the old Prius reminds me of you." The Prius was originally purchased 8 years ago for $33,000 and today it is worth $16,000.


1. How much of the gift is subject to the gift tax?

2. If Andy's father sold the Prius for $16,000 and then gave Andy the proceeds from the sale, how much of the gift would be subject to federal gift taxes?

3. If Andy's father sold the Prius for $16,000 and then gave the proceeds from the sale to Cornell to pay for Andy's graduate school tuition, how much of the gift would be subject to federal gift taxes?

Answers

Solution:

1. Amount of gift subject to gift tax is only $ 1,000.

In 2018, the gift tax exclusion limit is $ 15,000. Hence, only the amount over and above $ 15,000 is subject to gift tax and IRS form 109 to be filled.

Here, the fair value of car is considered as the worth of gift.

So, taxable amount of gift is $ 16,000 - $ 15,000 = $ 1,000.

2. Amount of gift subject to gift tax = $ 1,000

The gift tax provisions will not change even if Andy's father gifted him a car or in terms of sale proceeds (cash).

Any asset money or money's worth is given to another person where full consideration is not received back is a gift.

3. If Andy's father give sale proceeds to Cornell, Amount of gift subject to federal gift tax = $ 0

Any amount given directly to an educational institution to pay tution fees as a gift is exempt from gift tax.

Here,  Andy's father directly give the sale proceeds of $ 16,000 to Cornell as a gift for his further studies, that amount is exempt from gift tax.

Final answer:

The portion of the gift subject to gift tax depends on the value of the gift and the annual exclusion limit. If the gift is below the annual exclusion limit or qualified education expense, no gift taxes would be owed.

Explanation:

1. The gift tax applies to the portion of the gift that exceeds the annual gift tax exclusion limit. For 2018, the annual exclusion limit is $15,000 per recipient. Since the value of the Prius is $16,000, only $1,000 would be subject to gift tax.

2. If Andy's father sold the Prius for $16,000 and then gave him the proceeds, the gift would still be $16,000. However, since it is below the annual exclusion limit, no federal gift taxes would be owed.

3. If Andy's father sold the Prius for $16,000 and then gave the proceeds to Cornell for Andy's graduate school tuition, the gift would still be $16,000. However, since it is a qualified education expense, it would not be subject to federal gift taxes.

On December 1, Williams Company borrowed $45,000 cash from Second National Bank by signing a 90-day, 9% note payable. a. Prepare Williams' journal entry to record the issuance of the note payable. b. Prepare Williams' journal entry to record the accrued interest due at December 31. c. Prepare Williams' journal entry to record the payment of the note on March 1 of the next year.

Answers

Answer:

Explanation:

The journal entries are shown below:

a.  Cash A/c Dr $45,000

To Notes payable A/c $45,000

(Being note is issued for cash)

b.  Interest expense A/c Dr $333

             To Interest payable A/c $333

(Being accrued interest adjusted)

The computation is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)  

= $45,000 × 9% × (30 days ÷ 365 days)

= $333

The 30 days is calculated from December 1 to December 31

(C) Interest expense A/c Dr $665.75

    Interest payable A/c Dr $333

    Notes payable A/c Dr $45,000

                                          To Cash A/c $45,998.75

(Being cash is paid on maturity)

The computation is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)  

= $45,000× 9% × (60 days ÷ 365 days)

= $665.75

From January 1 to March 1 it would be 60 days

We assume 365 days a year.  

1. A simple random sample of size 15 is drawn from a normal population whose standard deviation is assumed to be 8. What's the margin of error if you're going to construct a 95% confidence interval for the population mean?

Answers

Answer:

± 4.05

Explanation:

Data provided in the question:

Random sample size = 15

Standard deviation = 8

Confidence level = 95%

Now,

Margin of error is given as:

Margin of error = ± [ ( z × s ) ÷ √n ]

Here,

From standard z table for 95% confidence level z = 1.96

Margin of error = ± [ ( 1.96 × 8 ) ÷ √15 ]

or

Margin of error = ± [ 15.68 ÷ 3.873 ]

or

Margin of error = ± 4.05

The margin of error for constructing a 95% confidence interval for a population mean with a sample size of 15 and a standard deviation of 8 is approximately 4.05.

To find the margin of error for constructing a 95% confidence interval for a population mean when the standard deviation is known, you can use the following formula:

Margin of error (EBM) = Z × (σ / √n)

Where:

Z is the Z-value from the standard normal distribution for a 95% confidence level, which is 1.96.σ (sigma) is the population standard deviation, which is 8 in this case.n is the sample size, which is given as 15.

Using these values, you can calculate the margin of error as follows:

EBM = 1.96 × (8 / √15)

First, calculate the standard error:

σ / √n = 8 / √15 ≈ 2.065

Then, calculate the margin of error:

EBM = 1.96 × 2.065 ≈ 4.05

Thus, the margin of error for constructing a 95% confidence interval for the population mean is approximately 4.05.

Hancock Inc. retains most of its earnings. The company currently has earnings per share of $11. Hancock expects its earnings to grow at a constant rate of 2 percent per year. Furthermore, the average PE ratio of all other firms in Hancock's industry is 12. Hancock is expected to pay dividends per share of $3.50 during each of the next three years. If investors require a 10 percent rate of return on Hancock stock, a fair price for Hancock stock today is ___A) 113.95
B) 111.32
C) 131.49
D) none of the above

Answers

Answer:

D1 = $3.50

D2 = $3.50

D3 = $3.50

Ke = 10% = 0.1

Po = D1 +     D2 +      D3

      (1+ke)   (1+ke)2   (1+ke)3

Po = $3.50 +   $3.50  + $3.50

        (1+0.1)      (1+0.1)2  (1+0.1)3

Po = $3.18    +  $2.89  + $2.63

Po = $8.70

None of the above

Explanation:

In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.

The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to these lower interest rates by deciding to expand your operations and begin marketing your new artificial intelligence prototype. What impacts would this decision have on the macroeconomy? Choose one or more: A. reducing unemployment B. raising GDP C. decreasing aggregate demand D. increasing the investment part of GDP E. increase net imports

Answers

Answer:

A, B and D

Explanation:

Expanding the money supply is an exercise of expansionary monetary policy.

This decision will first allow our tech startup to acquire cheaper loans and expand our operations, this expansion in operations will result in new employment opportunities and hence as a result, unemployment will be reduced assuming this is a general trend in the economy.

This decision also directly reflects an increased investment and hence the GDP on the whole and the investment part of GDP would both increase,

GDP = C + I + G + (X - M), where I = investment.

This change in macro economy will increase aggregate demand due to expansionary effects. Increase in imports is not conclusive as it may or may not happen depending upon the demand state.

Hope this helps.

As a manager of a chain of movie theaters that are monopolies in their respective markets, you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your movie theaters. On weekends, the inverse demand function is P = 20 – 0.001Q; on weekdays, it is P = 15 – 0.002Q. You acquire legal rights from movie producers to show their films at a cost of $25,000 per movie, plus a $2.50 "royalty" for each moviegoer entering your theaters (the average moviegoer in your market watches a movie only once).


a) What price should you charge on weekends?

b) What price should you charge on weekdays?

Answers

Answer:

11.25; 8.75

Explanation:

On weekends,

Inverse demand function: P = 20 – 0.001Q

On weekdays,

Inverse demand function: P = 15 – 0.002Q

Let quantity demanded tickets on weekend be Q1 and quantity demanded tickets on weekday be Q2,

Profit function:

= [(20 - 0.001Q1) × Q1] + [(15 - 0.002Q2) × Q2] - [25,000 + 2.5(Q1 + Q2)]

For maximizing profit, Differentiating profit w.r.t Q1 and Q2,

⇒ (20 - 0.002Q1) - 2.5 = 0

⇒ (15 - 0.004Q2) - 2.5 = 0

Hence, solving for Q1 and Q2, we get

Q1 = 8,750

Q2 = 3,125

Therefore,

Price during weekends: P = 20 - (0.001 × 8,750)

                                           = 11.25

Price during weekdays: P = 15 - (0.002 × 3,125)

                                           = 8.75

Given the acquisition cost of product Z is $64, the net realizable value for product Z is $58, the normal profit for product Z is $5, and the market value (replacement cost) for product Z is $60, what is the proper per unit inventory price for product Z?
a. $64.
b. $60.
c. $53.
d. $58.

Answers

Answer:

option (d) $58

Explanation:

Data provided in the question:

Acquisition cost of product Z = $64

Net realizable value for product Z = $58

Normal profit for product Z = $5

Market value (replacement cost) for product Z = $60

Now,

Floor Net realizable value = Net realizable value - Normal profit

= $58 - $5

= $53

Proper per unit inventory price for product Z

= lower of [ cost , net reliable value ]

=  lower of [ $64 , $58 ]

= $58

Hence,

The answer is option (d) $58

Joe's income is $500, the price of food (F, y-axis) is $2 per unit, and the price of shelter (S, x-axis)is $100. Which of the following represents his budget constraint?

A. 500 = 2F + 100S
B. F = 250 - 50S
C. S = 5 - .02F
D. All of the above.

Answers

Answer:

D. All of the above.

Explanation:

We can model his budget constraint by the following first order function.

2F + 100S = 500

In which F is the number of food items that he buys and S is the number of shelters that he pays.

So A. is correct.

If we want to write this equation with F as a function of S, it is also possible:

2F + 100S = 500

2F = 500 - 100S

F = 250 - 50s

So B. is also correct

Writing with S as function of F

2F + 100S = 500

100S = 500 - 2F

S = 5 - 0.02F

So C. is also correct

The correct answer is:

D. All of the above.

Final answer:

Joe's budget constraint, given his income and prices for food and shelter, is correctly represented by equation A. 500 = 2F + 100S, which indicates the combinations of food and shelter he can afford. However, B and C are simply different expressions of A, so the correct answer is D. All of the above.

Explanation:

The correct representation of Joe's budget constraint, given his income and the prices of food and shelter, is A. 500 = 2F + 100S. This equation describes the combinations of food (F) and shelter (S) that Joe can afford. The right-hand side of the equation (2F + 100S) represents total expenditures on food and shelter, with F being the quantity of food at $2 per unit and S being the quantity of shelter at $100 per unit. The left-hand side of the equation represents Joe's total income, which must be equal to his total expenditures if he spends his entire budget.

Choices B and C offer different mathematical expressions, but they are transformations of the original budget constraint and essentially convey the same physical constraint, just in terms of solving for one variable or the other. Therefore, the correct answer is D. All of the above. Each of these equations represents the same trade-offs between F and S that Joe can make, staying within his budget.

Grace owns a house. She can rent her house for two years to one tenant for a profit of $24,000 a year, or she can rent it to two tenants each year for a profit of $10,000 per tenant per year. Calculate the economic rent over the course of two years of renting to one tenant.

Answers

Answer:

The economic rent will be $8,000

Explanation:

The formula to compute the economic rent renting to 1 tenant is as:

Economic rent = Marginal Product - Opportunity Cost

where

Marginal cost would be for two years  $24,000 × 2

= $48,000

Opportunity cost would be renting to 2 tenant per year

= $10,000  × 2 year × 2 person

= $40,000

Putting the values above:

= $48,000 - $40,000

= $8,000

The _______________ and the _____________________ along with the Funding Plan should be established early on in the Joint Capabilities Technology Demonstration (JCTD) to ensure that preparations are developed to facilitate movement of the JCTD into the acquisition process. Please choose from below to fill in the blanks.

A. Program Management Office and an Acquisition Strategy
B. Technical Support IPT and a Technical Integration Plan
C. Management Plan and Transition Plan
D. Contracting Officer and an Acquisition Plan

Answers

Answer:

The correct answer is A

Explanation:

Program Management Office is a function within a firm or organization, it is defined as the standards of the project management . And its main motive is to make sure that the project and the programs run in a standardized and in repeatable manner.

Acquisition strategy is the strategy or a plan which is comprehensive and integrated plan that is developed as a part of activities of the acquisition planning. It sates the technical, support and business strategies in order to manage the program risks and also to meet the objectives or goals of the program.

Therefore, the Program Management Office and the acquisition strategies with the Funding plan need to be created on the JCTD.

Augi is the hottest new pop singer, but her agent discovers that Internet sales of Augi's music have been poor due to Internet piracy. However, concerts are regularly sold out and merchandise (such as T-shirts) sells well. If Augi wants to enhance profits, economists would most likely recommend that she:

Answers

Answer:

The correct answer is letter "C": keep prices of downloads low and raise prices for concerts and merchandise.

Explanation:

To maximize profits, Augi's agent should not stop doing any of the commercial activities the pop singer has been carrying out. However, a way to deal with Augi's music internet piracy, the agent could lower the online-song prices but the "losses" can be compensated by raising the concert ticket prices and the singer's merchandise sold there since most of Augi's concerts are sold-outs.

Calculator Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating assets 410,000 Ending operating assets 440,000 Which of the following is Atlas's return on investment (ROI) for last year? (Note: Round answer to two decimal places.)
a.0.50
b.0.22
c.0.15
d.0.32
e.0.41

Answers

Answer:

b.0.22

Explanation:

Return on investment (ROI) = Operating income/ Beginning Operating Asset = $ 92,000/ $440,000 = 0.22

An employee is dissatisfied with the resolution of an ethical conflict with his supervisor at his place of employment. According to the Institute of Management Accountants, the employee's next step should be to Select one: a. contact the IMA. b. contact the next level of management who is not involved in the ethical conflict. c. make the president of the company aware of the ethical conflict. d. report the incident to the State Board of Accountancy. e. resign from the company.

Answers

Answer and Explanation:

b. contact the next level of management who is not involved in the ethical conflict.

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